China is giving itself a 20% discount.
The headline is a misinterpretation.
When the Chinese government is deciding who to award procurement contracts to, it will treat Chinese made products as it they were 20% cheaper than they actually are. (Or phrased another way, the Chinese government will pay up to 20% more for any product if it’s made in china than similar product that has been imported.
This will notably impact intel and nivida because China will now pay more to buy chips from Chinese vendors.
You could say China does China first better than America does America first.
Because Trump ain’t the America first guy
So… in response to Trump’s plan to fuck over American consumers with artificially inflated prices so that rich fuckwads can keep paying themselves obecene salaries and dividends, China is threatening to go out of their way to keep prices as low as they can.
That’s the most cynically amusing thing I’ve seen… well… today at least.
Last I read, Trump’s proposal was a 35% tariff on goods from China.
I wonder if it has exceptions for MAGA hats and flags and ties made in China?
Yes, just like last time. He excluded tariffs on clothes because that would have affected his and Ivana’s clothing lines.
I find it interesting that even Snopes is political about this. They say it is true that Trump didn’t tariff clothes but falsely claimed it didn’t give Ivana an advantage when it absolutely did give her an advantage over American manufactures.
I thought that was for Canada and Mexico but for China he was staying at 10%
Doesn’t want too big of a price hike on his red MAGA hats
He was saying 25% for Canada and Mexico and an extra 10% for China. Which means 35% for China.
I just looked it up. He said he’s increasing tariffs for Canada and Mexico by 25% of the existing tariffs and for China increasing by 10% of the existing tariffs.
AFAIK China has few, if any, viable domestically produced alternatives to Nvidia or Intel hardware.
You’d be surprised, mostly because the alternatives simply aren’t sold in the US or EU. SMIC is only 2-5 years behind Intel, and that gap is closing as Intel and AMD have stagnated. The others are a bit behind SMIC, but still entirely viable for the vast majority of use cases.
China is missing upper end consumer and data center chips so far, but that’s just a matter of time and investment, something a massive trade war would provide.
China makes just over 50% of ALL semiconductors in the world. While they don’t make most of the big name CPUs, they make most all the other chips in your computer. Memory included.
https://en.wikipedia.org/wiki/Semiconductor_industry_in_China
the MOF proposal primarily focuses on industrial manufacturing goods, except for agricultural, forestry, animal husbandry, fishery products, and mineral resources.
Everything except essential goods? I wonder how this discount works, does the merchant have to claim the cost of discount from government? Usually when subsidies is announced it will require system for it to work so leakage is kept to minimum, this would be such a mess as it affect almost all item.
